Disney (DIS) Still Has Significant Upside Potential, Says Wells Fargo

Vardah Gill

Mon, May 18, 2026 at 5:29 PM EDT 2 min read

The Walt Disney Company (NYSE:DIS) is included among the 10 Best “Dogs of the Dow” Stocks to Buy for the Rest of 2026.

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On May 8, Wells Fargo & Company lowered its price recommendation on The Walt Disney Company (NYSE:DIS) to $146 from $148. It reiterated an Overweight rating on the shares. The firm said its positive view on Disney has largely been tied to the idea of a new phase under refreshed management, with the company focusing on getting more value out of its existing assets. Analysts pointed to early signs of improvement in content and direct-to-consumer operations, while continued strength in the Parks business is helping support earnings growth. Wells Fargo added that it still sees more than 30% upside in the stock over the next 12 months.

A day earlier, on May 7, Raymond James raised its price goal on Disney to $119 from $115. It kept an Outperform rating on the stock. The firm said Disney reported stronger-than-expected fiscal Q2 results and slightly increased its fiscal 2026 EPS growth outlook to 12%. According to the analyst, the results reinforced confidence that the company can deliver double-digit EPS compound annual growth through fiscal 2026 and fiscal 2027. The note also highlighted several factors supporting that outlook, including Disney’s large streaming platform, stable sports exposure, strong franchise portfolio, and steady cash flow generation from Parks and Experiences. The analyst added that streaming is becoming a larger contributor to operating income growth, even though Experiences remains Disney’s biggest profit driver. Attention is also shifting toward the second half of fiscal 2026 as broader macroeconomic concerns begin to ease.

The Walt Disney Company (NYSE:DIS) is a global entertainment company operating across the Entertainment, Sports, and Experiences segments. Its Entertainment business includes film production, television content, and global distribution activities outside of sports programming.

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